United Autoworkers loses unionization vote at Alabama Mercedes factory

The United Auto Workers suffered a disappointing loss at a Mercedes-Benz, opens new tab factory in Alabama on Friday, a setback for the union's plans to achieve broader gains in the U.S. South after winning a deal at a Tennessee Volkswagen plant in April.

With votes still being tallied, the "no" votes had passed the critical threshold ensuring a loss for the union, according to a tally posted online by the UAW., opens new tab About 5,100 workers were eligible to vote.

The UAW had hoped to continue a run that includes the overwhelming VW VOWG_p.DE win in Chattanooga, Tennessee, as well as a lucrative new contract at six Daimler Truck facilities across the South. Daimler Truck (DTGGe.DE), opens new tab was spun off from what is now Mercedes.

A win at Mercedes would have marked the second foreign-owned automaker in the U.S. South to join the UAW, but instead the union will need to redouble efforts to win over workers in a region that has previously been inhospitable to unions. Widening its reach beyond the Detroit automakers is critical for the UAW to maintain its influence within the industry.

VW workers twice voted against the UAW before last month's win, and Nissan (7201.T), opens new tab workers at a plant in Mississippi rejected the UAW by a wide margin in 2017. In 2021, workers at an Amazon.com AMZN.O warehouse in Alabama voted against forming a union by a more than 2-to-1 margin.

The loss complicates the story of how the UAW can market its influence, especially in the South, but it likely will not deal a significant blow to the rest of the UAW's organizing efforts, labor experts said.